OST-97-2970
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OST-97-2970
America West Airlines, Inc. (Exemption, Slot Restrictions, Columbus-New York LaGuardia / Phoenix-Chicago O'Hare)
OST-97-2970 | October 3, 1997
America West is forced to request an exemption because it has been unable to obtain slots under the Buy/Sell Rule. Indeed, America West has contacted every major U.S. airline in an attempt to buy or lease additional slots at O'Hare and LaGuardia. The carrier has found that slots are not available at any price from existing slot holders at these high density airports. America West has considered additional service during off-peak hours but has determined that such flights are not sustainable
Answers are due by October 20, 1997
Counsel: America West and Baker Hostetler, Joanne Young, 202-861-1532
America West Airlines, Inc. (Exemption, Columbus-New York LaGuardia; Phoenix-Chicago O'Hare)
OST-97-2970 | October 20, 1997
America West Airlines, Inc. ("America West"), the nation's ninth largest carrier, and holder of slots at Chicago, requests slots by exemption at Chicago O'Hare International and New York LaGuardia airports. The application demonstrates the incredible lengths to which a carrier will go to circumvent the realities of the marketplace and, instead, rely on government to provide a solution. America West has failed to make even a colorable showing of the "exceptional circumstances" required to justify an exemption under this provision. The application should be denied.
Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130
America West seeks extraordinary relief, relief not warranted by the decidedly Unexceptional circumstances present in the Columbus - New York market. Indeed, even if a showing of exceptional circumstances were not required by the statute, the lesser public interest standard contained in Section 41714(c)(1) would not be satisfied by a grant of free slots in a market where there is plenty of nonstop competition and the public costs generated would outweigh any benefits. In short, there is neither a legal nor a policy basis for granting the application.
Counsel: US Airways and Zuckert Scoutt, Richard Mathias, 202-298-8660
America West Airlines, Inc. / Simmons Airlines, Inc. / American Trans Air, Inc. (Exemptions, High Density Rule at New York LaGuardia and Chicago O'Hare)
OST-97-2970 | OST-97-2985 | OST-97-2984 | October 21, 1997
Answer of Trans World Airlines
The feeding frenzy of airlines enticed by DOT promises of a liberalized approach to the grant of slot exemptions has now escalated dramatically. Three more carriers, including two majors or their affiliates, have now requested a total of 83 new slots at LaGuardia and O'Hare Airports. American (Simmons) makes no pretense that it is a new entrant and proposes to use valuable slots for commuter equipment. America West and American Trans Air (ATA) propose to add service primarily in large markets that are already well served. In considering these applications, the Department must keep in mind the purpose of slot rules -- to limit runway congestion and avoid the imposition of delay costs on airlines and consumers. Grant of these applications would benefit these carriers but impose real economic costs on other airlines and consumers. TWA hereby answers' and requests that the applications be denied.
Counsel: TWA and Richard Fahy, 202-457-4764, rfahy@ibm.net
America West Airlines, Inc. (Exemption, High Density Rule)
OST-97-2970 | October 24, 1997
Consolidated Reply of America West
The incumbents attempt to distort the issues and divert attention from the fact that the exemption process is currently, and for the foreseeable future, the only way to promote competition at these airports. Authorizing slots to America West substantially serves the public interest by enabling the only major post deregulation carrier to achieve its full growth potential, promote the availability of efficient, low-fare services, and reduce market concentration -- three primary objectives specifically set forth in the Airline Deregulation Act. None of the objections raised by the incumbent carriers have demonstrated that America West's circumstances are not unique and exceptional, or that this new competition would not be in the public interest. The answers of United, US Airways and TWA are intended only to confuse the Department and should be summarily rejected.
Counsel: America West and Baker Hostetler, Joanne Young, 202-861-1532
America West Airlines, Inc. (Exemption, Columbus-LaGuardia; Phoenix-Chicago)
OST-97-2970 | November 4, 1997
Motion for Leave to Late File and Answer in Support - City
of Phoenix
Sadly, forty percent of the carrier's departures from O'Hare must operate during off-peak, low density periods. The frequency increases proposed by America West would result in 95 new connections being generated each day in Phoenix, thus greatly increasing competition between the West Coast and Chicago, and enhancing the quality of America West's Phoenix hub.
Counsel: City of Phoenix, Patrick Le Favre
America West Airlines, Inc. (Exemption, High Density Rule, LaGuardia and O'Hare)
OST-97-2970 | November 6, 1997
Motion for Leave to File and Reply of United Air Lines
United's comments herein are limited to America West's application for an award to it of five additional free slots at O'Hare. This should not be interpreted, however, as indicating support by United for giving America West free slots at LaGuardia. United has not analyzed America West's LaGuardia request sufficiently to determine whether the request is consistent with the revised exemption criteria the Department announced in Order 97-10-17. United would note, however, that America West has made no meaningful effort to show that the Columbus-New York market is under-served or that prices are noncompetitive Similarly, there appears to be little evidence in the record that granting America West slots at LaGuardia would influence fares significantly in markets America West serves via Columbus, or that any of these markets is uniquely underserved, or in need of additional connecting service to LaGuardia.
Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130
America West Airlines, Inc. (Exemption, High Density Rule, O'Hare and LaGuardia)
OST-97-2970 | November 21, 1997
Motion for Leave to File and Reply of America West
United's efforts to paint a rosy competitive picture and convince the Department that O'Hare and Midway are a single competitive market, must be rejected. Its arguments are a subterfuge designed to prevent low-fare full service competition at the airport it dominates. United's position is not only counter-intuitive, it is not supported by any evidence. The fact that O'Hare and Midway serve different markets was implicitly, if not explicitly, accepted in the 1994 Reno Air order and the recent Simmons order. The distinct nature of these two markets is reflected in the substantial fare differentials that exist between the two airports. O'Hare serves business, international and connecting travellers. Midway does not now, and never will, service these travellers.
Counsel: Baker Hostetler, Joanne Young, 202-861-1532
America West Airlines, Inc. (Exemption, High Density Rule, LaGuardia & O'Hare)
OST-97-2970 | December 16, 1997
Reply of America West to the Motion to File
and Answer of the Queens Borough President
The Queens Borough President in his late Answer, has essentially made the same generic arguments he made last June in opposition to the applications of ValuJet and AirTran Airways. In addition, the Borough requests the Department to impose a very narrow test for exceptional circumstances under the new entrant statute in considering America West's application. However, the Department carefully analyzed all of the Borough's concerns in the Frontier Order. The Department's findings in Frontier fully support the grant of eight slots to America West. The grant of this request would not have a measurable effect on noise, pollution, delay or vehicular traffic nor would it in any way compromise safety.
Moreover, the grant of slots constitutes a significant pro-competitive action bringing important low-fare benefits to the LaGuardia-Phoenix/West Coast markets by enabling America West to efficiently utilize its Columbus hub and thereby substantially stimulate low-fare options in these markets.
Counsel: America West and Baker Hostetler, Joanne Young, 202-861-1532
America West Airlines, Inc. (Exemption, High Density Rule, LaGuardia and O'Hare)
OST-97-2970 | December 18, 1997
Motion for
Leave to File and Response of United Air Lines
America West has again taken refuge in inflated rhetoric and unsound analysis to justify its request for "new entrant" slots at Chicago's O'Hare airport pursuant to 49 U.S.C. § 41714(c). However, in deciding whether to grant exemptions under that provision, bombast cannot be substituted for solid economic reasoning applied to an accurate rendering of the facts. Both the Chicago-Phoenix and Chicago-Las Vegas markets are indisputably well-served and highly competitive. Utilizing what the Department readily acknowledges are, under the current High Density Rule, a very limited number of exemption slots at O'Hare so that America West can add service in these two city pairs will not enhance the competitive benefits already available to the traveling public. Rather, using these limited resources for this purpose will deny small communities essential access to the national transportation system at O'Hare, and will foreclose increases in far more economically productive international operations that can only be provided at O'Hare.
Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-930
America West Airlines, Inc. (High Density Rule - Chicago O'Hare and New York LaGuardia)
OST-97-2970 | December 31, 1997
Motion for
Leave to File and Response of America West to The Second Unauthorized
Filing by United
America West reaffirms all the points made in its application, consolidated reply and reply to United's first unauthorized reply. None of the accusations contained in United's second unauthorized response undermine the fact that O'Hare and Midway generally service different passenger markets. America West simply cannot provide the much needed competitive low-fare service to the local and connecting business and leisure traffic between O'Hare and Phoenix and the West Coast by service to Midway
Counsel: America West and Baker Hostetler, Joanne Young, 202-861-1532
Order 98-4-22 | OST-97-3087 | OST-97-2984 | OST-97-2970 | OST-97-3086 | OST-97-2870 | OST-97-2932 | OST-97-2885 | OST-97-2557 | Issued and Served April 21, 1998
ORDER GRANTING AND DENYING APPLICATIONS FOR SLOT
EXEMPTIONS AT NEW YORK'S LAGUARDIA AND JOHN F. KENNEDY
INTERNATIONAL AIRPORTS
After considering applications for exemptions from 14 CFR Part 93, Subparts K and S, for slots at New York's LaGuardia and John F. Kennedy (JFK) Airports, the Department has decided to grant five slot exemptions to American Trans Air, Inc. (ATA) for nonstop service in the Chicago (Midway)-LaGuardia market; and four slot exemptions to Spirit Airlines, Inc. (Spirit) for nonstop service in the Melbourne, Florida-LaGuardia market. We find that granting these exemptions is in the public interest and meets the statutory "exceptional circumstances" test. Grant of these exemptions is conditioned on their being used solely for nonstop service in the city-pair markets designated in the carriers' applications. The Department has also decided to deny the remainder of ATA’s and Spirit's applications as well as the applications of AccessAir Holdings, Inc., America West Airlines, Inc., Colgan Air, Inc., and the joint application of Pan American World Airways, Inc. and Carnival Air Lines, Inc. Further, we deny the petition for reconsideration of AirTran Airways' application filed by the People and Businesses of Bloomington-Normal, IL; Moline-Quad Cities, IL; Toledo, OH; and Akron-Canton, OH. In reaching our decision on all of these requests we were committed, among other guidelines, to avoiding significant congestion and environmental problems. Primarily for these reasons, we are granting only a limited number of exemptions.
By: Charles Hunnicutt
America West Airlines, Inc. (Exemption, Columbus-New York LaGuardia)
OST-97-2970 | May 11, 1998
Petition for Reconsideration of America West Airlines
America West submits that the Department's decision to impose an arbitrary limit of nine additional operations despite the Congressional directive to use exemptions to promote competition at the slot controlled airports should be reversed. The substantial competitive benefits for travelers between LaGuardia, Columbus and the West provided by America West's highly competitive full service should not be sacrificed to an arbitrary operational limit unrelated to any environmental or safety issues. In addition the recently announced alliance agreements between the largest slot holders at LaGuardia constitute an important new factor which supports grant of an exemption to America West.
Counsel: America West and Baker Hostetler, Joanne Young, 202-861-1532
Trans States Airlines, Inc. / America West Airlines, Inc. / Simmons Airlines, Inc. / Atlantic Coast Airlines, Inc. (High Density Rule, Chicago O'Hare)
OST-97-2368 | OST-97-2970 | OST-97-2985 | OST-97-3259 | May 11, 1998
Not only did United Express receive two-thirds of the small community slots the Department awarded, but each United Express carrier is required to serve only three cities, while American Eagle must spread the same number of slots over four cities. As a scheduling matter, this means that Trans States d/b/a United Express can offer three daily roundtrips to two of its three cities; Atlantic Coast d/b/a United Express can also offer three daily roundtrips to two cities; but American Eagle would be limited to two daily roundtrips to each of the four cities it was awarded.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
Trans States Airlines, Inc. / America West Airlines, Inc. / Simmons Airlines, Inc. d/b/a American Eagle / Atlantic Coast Airlines, Inc. (High Density Rule, Chicago O'Hare)
OST-97-2368 | OST-97-2970 | OST-97-2985 | OST-97-3259 | May 20, 1998
United's paper is a pastiche of grievances involving such unrelated matters as the Department's treatment of Air Wisconsin d/b/a United Express in a proceeding about EAS service, and the FAA's decision of March 26, 1998 (FAA Docket 29009) denying United's petition for the return of international slots at O'Hare that had been withdrawn from United prior to 1993 (63 Fed. Reg. 19283, April 17, 1998). There is no logical connection between the FAA's decision in March regarding international slots, and the Department's decision here to improve domestic service to small communities as mandated by Congress. The Department should reject the tortured linkage that United is attempting to create between these wholly unrelated proceedings.
Attachment: Employees Ask Why Pilots are the Only Group Ratifying the United-Delta Alliance, from NewsReal, 5/4/98
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
America West Airlines, Inc. (High Density Rule, New York LaGuardia)
OST-97-2970 | May 22, 1998
Answer of Spirit Airlines in Support of
Petition for Reconsideration and Motion for Leave to File
Spirit wishes to note that it plans to adjust its New York-area services to reduce its need for additional new-entrant slots at LGA from four to two. Once Spirit inaugurates its LGA-Melbourne service, it will discontinue its MYR-JFK operation, and move the Myrtle Beach service to LGA outside of slot-controlled hours. Therefore, Spirit will need new entrant slots only for its second daily LGA-MYR rotation. As Spirit has noted, operating services to multiple New York-area airports is prohibitively expensive. By moving its service away from JFK, Spirit can begin to control its operating costs, and thereby strengthen the competitiveness of its service.
Counsel: Galland Kharasch, Anita Mosner, 202-342-5200
AccessAir Holdings, Inc. / America West Airlines, Inc. / Chautauqua Airlines, Inc. / Pro Air, Inc. / Spirit Airlines, Inc.
| Order 98-10-29 OST-98-4499 OST-97-2970 OST-98-4425 OST-98-3583 OST-97-2932 |
Issued and Served October 27, 1998 | Order Granting and Denying Applications for Slot Exemptions at
New York's LaGuardia Airport |
High Density Rule, New York LaGuardia |
After careful consideration of these applications for exemptions from 14 C.F.R. Part 93, Subparts K and S. for slots at New York's LaGuardia Airport, the Department has decided to grant two slot exemptions to Pro Air, Inc. for nonstop service in the Detroit City Airport-LaGuardia market and two slot exemptions to Spirit Airlines, Inc. for nonstop service in the Myrtle Beach-LaGuardia market. We find that granting these exemptions is in the public interest and meets the statutory "exceptional circumstances" test. Grant of these exemptions is conditioned on their being used solely for nonstop service in the city-pair markets designated in the carriers' applications.
By: Charles Hunnicutt
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